The value of bilateral trade between Indonesia and Pakistan soared to a record level of $3.9 billion in 2021 despite the outbreak of Covid-19 pandemic, revealed Indonesian Consul-General in Karachi Dr June Kuncoro Hadiningrat.
Speaking at a business-to-business hybrid meeting organised by Indonesian Consulate General in Karachi at a local hotel on Saturday, Hadiningrat stated that bilateral trade witnessed a surge of around 56% on a year-on-year basis as it stood at $2.5 billion in 2020.
Prior to this, the two nations posted largest trade value of $3.1 billion in 2018, he recalled.
“This meeting is part of our efforts to accelerate the post-Covid-19 economic recovery that is in line with the G20 presidency of Indonesia in 2022,” he underlined. “It also signals the gradual start of a physical (on-site) exhibition in Karachi to boost economic activities,” he added.
Under economic diplomacy, the Indonesia-Pakistan web portal received inquiries from 123 Indonesian companies and 115 Pakistani firms in 2021, which generated direct trade transactions worth over $9.84 million, Hadiningrat underlined.
“The trade service portal envisages to connect both countries through tourism, investment and educational opportunities,” he noted.
Speaking to The Express Tribune, Pakistan Businesses Forum (PBF) President Mian Usman Zulfiqar underlined that Indonesia was an attractive market for Pakistan.
“It is a good sign that our bilateral trade is increasing, but it is still in favour of Indonesia,” he mentioned. “Although the free trade agreement (FTA) was signed between the two countries, we failed to tap the Indonesian market properly.”
He reaffirmed that Jakarta enjoyed presence in the ASEAN (Association of Southeast Asian Nations) region.
He suggested the Trade Development Authority of Pakistan (TDAP) to collaborate with the High Commission of Pakistan in Jakarta and conduct road shows to display locally produced products.
“Fresh fruits, halal meat and readymade garments from Pakistan can capture an optimal share of Indonesian market,” he noted.
He emphasised that trade fairs and proper marketing of local textile goods, especially the high value-added products, would allow Pakistan to exploit the Indonesian market.
“Similarly, the potential of the horticulture sector can be realised by increasing awareness, research and development, proper branding, rigorous marketing, trade fairs and promotional activities.”
He was of the view that lack of awareness of Pakistani products could be resolved by enhancing participation in Indonesian trade exhibitions, which were held annually.
“Such expos, exhibitions and meetings should be encouraged and facilitated,” he stressed.
Arif Habib Commodities CEO Ahsan Mehanti held the view that supply side disruptions in the western countries amid Covid-19 pandemic led to growth in Pakistan’s trade with eastern countries.
Global commodity prices remained high during the second and third wave of Covid-19, he said adding that palm oil consumption was rising in Pakistan on the back of competitive pricing from Indonesia.
Employers Federation of Pakistan (EFP) President Ismail Suttar underlined that Pakistan imported goods worth $4.19 billion from Indonesia and exported just around $170 million, which stood at a meagre 4% of the imports.
“In contrast to this, the year 2018 was more remarkable,” he noted. “In that year, Pakistan’s import from Indonesia stood at around $300 million and exports touched $2.5 billion mark, which was 12% of the imports.”
Published in The Express Tribune, February 27th, 2022.
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